CNBC's Rick Santelli, And His Little Revolt



I had read a little about this screed, so I wanted to see what it is all about.

I can understand people with mortgages getting a little peeved about spending money for people whose mortgages are in trouble. This extra money was never disclosed on the mortgage papers.

But to characterize the recipients of the money as 'losers' misses the point. These people aren't losers. These people are risk-takers. Daring risk-takers. The kind of people who made America great. Like the pioneers on the Oregon Trail, fighting off Indian attacks when they could have stayed in Missouri planting corn. Or the poorer Utah pioneers who couldn't afford wagons and who put all their possessions into wheelbarrows and pushed them 1,500 miles on foot to reach Brigham Young's paradise. Nutty but tough folks.

People who are willing to risk their stature in the community, their health, and even their family's safety on an ARM with a balloon payment have my respect. I'd never do that, but I understand why so many people did. Here, here's $50, and my admiration.

In short, these people are a lot more gutsy than the Wall Street pansies at their trading screens that Santelli characterizes as 'Americans' and the 'Silent Majority'. Santelli calling upon the august authority of the Founding Fathers to strengthen his position was ridiculous. Remember, Jefferson flirted with bankruptcy his entire life, and wanted to have an economic system where one's debts were erased every seven years as a matter of course. Jefferson wouldn't be rolling in his grave - he'd be out there in the Inland Empire getting home loans with no money down.

Calling struggling homeowners 'losers' before the game is over is certainly premature. Even in the Superbowl, the game is not over until the buzzer sounds. These days, the banks owe so much money and are so dependent on Uncle Sam that Santelli's traders seem much more fitting to bear the big "L" on the forehead than the struggling home owners in Stockton.

Remember, one's property value depends critically on your neighbors' property values. Why else do real estate people say that the most important factor in their business is 'location, location, location'? To allow your neighborhood to become gutted from foreclosures will impact your position, irrespective of anything you do. Everyone in your neighborhood hangs together, or everyone hangs separately. It's your choice.

The $75 billion in the Obama plan to help 4 million home owners isn't to subsidize losers. It's to subsidize you. Washed-up trader, meet the fellow who signed up for the liar loan you sold back in 2006. Have a drink together. You have a lot in common. Your fates are one and the same. You can go to hell together, or to heaven. It's your choice.